ALFABS AUSTRALIAASX:AAL +12.00%20 Interest Coverage is 2.01 as of Dec. 2025, which is 80% below its 10-year median of 9.87. GuruFocus rates ASX:AAL with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 427 Conglomerates companies, ALFABS AUSTRALIA ranks better than 58.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. ALFABS AUSTRALIA's
Operating Income
for the
six
months ended in Dec. 2025 was A$3.0 Mil. ALFABS AUSTRALIA's Interest Expense for the
six
months ended in Dec. 2025 was A$-1.5 Mil.
ALFABS AUSTRALIA's interest coverage for the quarter that ended in Dec. 2025 was 2.01.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ALFABS AUSTRALIA's Interest Coverage or its related term are showing as below:
ASX:AAL'
s Interest Coverage Range Over the Past 10 Years
Min: 5.4 Med: 9.87 Max: 31.72
Current: 8.11
ASX:AAL's Interest Coverage is ranked better than 58.31% of 427
companies
in the Conglomerates industry
Industry Median: 5.29
vs ASX:AAL: 8.11
ALFABS AUSTRALIA (ASX:AAL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
ALFABS AUSTRALIA Interest Coverage Related Terms
ALFABS AUSTRALIA Interest Coverage Historical Data
* Premium members only.
The historical data trend for ALFABS AUSTRALIA's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Conglomerates subindustry, ALFABS AUSTRALIA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ALFABS AUSTRALIA Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALFABS AUSTRALIA (ASX:AAL) has a Interest Coverage of 2.01 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALFABS AUSTRALIA and its competitors. This is 80% below median its historical median of 9.87. Over the past decade, ALFABS AUSTRALIA's Interest Coverage has ranged from 5.40 to 31.72. According to the industry distribution chart, ALFABS AUSTRALIA ranks #178 out of 427 companies in the Conglomerates industry, placing it in the top 41.7%.
Is ALFABS AUSTRALIA's Interest Coverage too high?
ALFABS AUSTRALIA's current Interest Coverage of 2.01 is 80% below median its 10-year median of 9.87. Over the past 10 years, this metric has ranged from a low of 5.40 to a high of 31.72. The Conglomerates industry median Interest Coverage is 5.29. ALFABS AUSTRALIA's value of 2.01 is 62% below this industry median. Based on the distribution chart, ALFABS AUSTRALIA ranks #178 out of 427 companies in the Conglomerates industry, which is above the industry midpoint. Overall, ALFABS AUSTRALIA has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, ALFABS AUSTRALIA ranks #178 out of 427 companies for Interest Coverage. This puts ALFABS AUSTRALIA in the upper half of its industry. The industry median Interest Coverage is 5.29. ALFABS AUSTRALIA's value of 2.01 is 62% below this benchmark. Historically, ALFABS AUSTRALIA's own Interest Coverage has ranged from 5.40 to 31.72 over the past decade. While the company's 10-year median is 9.87 vs. the industry median of 5.29, ALFABS AUSTRALIA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.29, based on 427 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALFABS AUSTRALIA's current Interest Coverage of 2.01 is 62% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current Interest Coverage is 2.01, which is 80% below median its own 10-year median of 9.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current Interest Coverage of 2.01. The current Interest Coverage is 2.01, which is 80% below median its 10-year median of 9.87 and 62% below the Conglomerates industry median of 5.29. ALFABS AUSTRALIA's overall GF Score™ is 20/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ALFABS AUSTRALIA (ASX:AAL), the current Interest Coverage is 2.01 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
20GF Score
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